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Pre - Feasibility Report BHAVYA CEMENTS LIMITED TANGEDA VILLAGE, DACHEPALLY MANDAL, GUNTUR DISTRICT, ANDHRA PRADESH Pre - Feasibility Report Submitted by: Bhavya Cements Ltd., IInd Bhavyas Spoorthi Bhavan, Plot No. A1, Film Nagar, Jubilee Hills, Hyderabad – 500 003. Phone: 040-23558384 Fax: 040-23558393. Email: - [email protected] Submitted to MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE GOVERNMENT OF INDIA INDIRA PARYAVARAN BHAWAN, JOR BAGH ROAD, ALIGANJ, NEW DELHI Pre-Feasibility Report Bhavya Cements Limited, Pre – Feasibility Report Bhavya Cements Limited, Tangeda Village, Dachepalli Mandal, Guntur District, Andhra Pradesh. 1 Executive Summary M/s. Bhavya Cements Ltd obtained Environmental Clearance for integrated Cement Plant of 4.0 Million TPA (Phase I : 4200 TPD and Phase II: 7700 TPD) Capacity, 15 MW captive power plant and Captive mining of Limestone at Thangeda Village, Dachepalle Mandal, Guntur Dist, Andhra Pradesh from Ministry of Environment, Forest and Climate Change (MoEFCC) vide letter no. F. No. J- 11011/1186/2007-IA II (I), dt. 22.09.2008, and secured extension of EC validity by letter dt.03.03.2016. The existing project for 3000 TPD of Clinker production and 4200 TPD of cement production is in operation. The consent to operate was obtained from AP Pollution Control Board vide letter no. APPCB/VJA/GTR/205/HO/CFO/2018, dt. 06.06.2018 valid till 31.08.2023. It is now proposed to modernize the Phase I project to enhance clinker manufacturing capacity by 1200 TPD to achieve 4200 TPD, and cement manufacturing capacity by 1680 TPD to achieve a total capacity of 5880 TPD. The modernization mainly entails increasing operational hours of limestone crusher, raw mill coal mill, and enhancing capacity of Cooler ESP transformer field and modernization of kiln. The packing mills established for phase II shall be utilized to achieve 5880 TPD cement capacity. Subsequently it is also proposed to reduce Phase II capacity by 1200 TPD for clinker and 1680 TPD for cement, to maintain the capacity mentioned in EC. The plant area is 65.00 ha. The capital cost for modernization is Rs. 62 crores and the capital cost for balance works in Phase II is Rs. 568 crores. Nearest village Tangeda at a distance of 1.2 in NE direction, Krishna River flowing from NW to NE at a distance of 3.7 km in North direction. Telangana - Andhra Pradesh interstate boundary is at a distance of 3.9 km in north direction. There are nine reserve forests within the impact area of 10 km radius from the project site. Tangeda RF at a distance of 1.5 km in N direction, Vemavaram RF at a distance of 3.2 km in SE direction, Madenapadu RF at a distance of 3.6 km in W direction, Sulthanpur RF at a distance of 4.0 km in N direction, Gurrambodu RF at a distance of 4.9 km in N direction, Pittakarikota RF at a distance of 6.5 km in NE direction and Chintalapalem RF at a distance of 6.5 km in NE direction Kamepalle RF at a distance of 7.8 km in E direction and Ravipahad RF at a distance of 8.0 km in NW direction. There is no national park, wildlife sanctuary, ecologically sensitive area, biosphere reserve, wildlife corridor, tiger/ elephant reserve, critically polluted area within the impact area of 10 km radius from the project site. P-1 Pre-Feasibility Report Bhavya Cements Limited, 2 Introduction of the Project / Background Information 2.1 Identification of Project and Project Proponent: The objective of this pre-feasibility study is to provide information for modernization of existing plant capacity in exist plant land at Thangeda Village, Dachepally Mandal, Guntur Dist, Andhra Pradesh. (i) The core promoters of BCL are Mr. V. Ananda Prasad & Mr. P. Siva Kumar. Brief profiles of the promoters are given below: Mr. V. Ananda Prasad He is a mechanical engineer with 35 years of experience in Cement and construction industry. He is Promoter and Managing Director of Bhavya Cements Limited and also Bhavya constructions. Bhavya constructions has executed more than 50 projects of around 2.02 million square feet and implementing is implementing projects of about 4.0 million square feet. Mr P.Siva Kumar Sri P Siva Kumar, aged 49 years, is a graduate in civil engineering from Osmania University. He is promoter and Director of Bhavya Cements Limited. He promoted a partnership firm Sri Mahavishnu Constructions which has planned, designed and executed two residential/commercial construction projects aggregating to about 1.00 lakh square feet. Since 1999 he has been a business associate in Bhavya Constructions on a project to project basis. (ii) Need for the project The cement industry in India has been on a robust growth trajectory for more than a decade, led by buoyancy in sectors like real estate and construction. It is modern and deploys latest technology, which is among the best in the world. Additionally, the industry has great potential for development as limestone of excellent quality is found in this area. India is the second largest producer of cement on the globe after China. P-2 Pre-Feasibility Report Bhavya Cements Limited, Indian Cement Industry - Production and Consumption Cement Production Cement Consumption in Year in million tons million tons 2011-12 230.47 221 2012-13 24823 239 2013-14 255.826 245 2014-15 270.038 256 2015-16 283.457 269 2016-17 279.813 270 The cement industry in India has received a great impetus from a number of infrastructure projects taken up by the Government of India like road networks and housing facilities. While the Indian cement industry enjoys a phenomenal phase of growth, experts reveal that it is poised towards a highly prosperous future over the very recent years. Estimates state that the capacity in the sector is 475 MTPA with 575 operational cement plants by September 2017. The cement industry in the subcontinent is dominated by around 20 companies. Government Initiatives With an objective of accelerating and sustaining growth in the cement industry the government has taken various steps. The infrastructure sector has received an impetus in the form of improved funds and tax related incentives offered to attract investors for tapping the infrastructure opportunities around the country. Introduction of tax free bonds, formation of infrastructure debt funds and formulating a comprehensive policy for developing public private partnership projects (PPPs) are some of the steps that will provide required stimulus for growth of cement industry in India. The proposal for Amruth cities and affordable housing schemes by Government of India would enhance the demand for cement as housing sector alone has 67% share followed by infrastructure with 13% share of cement consumption. Growth in domestic cement demand is likely to remain strong, given the revival in the housing markets, constant government spending on the rural sector, and due to rise in the number of infrastructure projects being implemented by the private P-3 Pre-Feasibility Report Bhavya Cements Limited, sector. Furthermore, it is expected that the industry players will continue to increase their annual cement output in coming years and India’s cement production will grow at a compound annual growth rate (CAGR) of around 5-6 per cent during 2017-20. (iii) Demand drivers in the near term The Housing segment accounts for a major portion of the total domestic demand for cement in India. Real estate market is expected to grow at a CAGR of 11.6 per cent over 2011–20, with the market expected to reach USD180 billion by 2020. Growing urbanisation, an increasing number of households and higher employment are primarily driving the demand for housing, accounting for 67 per cent of the total consumption. Initiatives by the government are expected to provide an impetus to construction activity in rural & semi urban areas through large infrastructure & housing development projects respectively The government is strongly focused on infrastructure development to boost economic growth & is aiming for 100 smart cities. It plans to increase investment in infrastructure to USD1 trillion in the 12th Five Year Plan (2012–17), compared with USD514 billion under the 11th Five Year Plan (2007–12). Infrastructure projects such as Dedicated Freight Corridors as well as new & upgraded airports & ports are expected to further drive construction activity. The government intends to expand the capacity of the railways & the facilities for handling & storage to ease the transportation of cement & reduce transportation costs. The government is strongly focused on infrastructure development to boost economic growth; It plans to increase investment in infrastructure. Infrastructure projects such as Dedicated Freight Corridors as well as new and upgraded airports and ports are expected to further drive construction activity. The government intends to expand the capacity of the railways & the facilities for handling & storage to ease the transportation of cement & reduce transportation cost. P-4 Pre-Feasibility Report Bhavya Cements Limited, (iv) Employment Generation For the proposed modernization project activity direct employment for about 30 persons and indirect employment for about 50 persons is expected and phase II project activity direct employment for about 450 persons and indirect employment for about 200 persons is expected. This is only a projected demand subject to change; however, definitely there will be a sizeable anticipated employment opportunity. 3. Project Description (i) Type of Project The proposed project is falls in the A category of 3 (b) in the Schedule of EIA Notification, 2006. Manufacturing Capacity
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